01—Abstract
Summary
Summary of the 10-K filed February 25, 2014. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (ES), formerly Northeast Utilities (NU), reported strong financial performance for the year ended December 31, 2013.
The company successfully integrated its merger with NSTAR, which closed in April 2012, leading to significant revenue and earnings growth. Net income attributable to controlling interest reached $786 milliona, or $2.49 per share, a substantial increase from the prior year.
This growth was driven by improved performance across all segments, particularly electric distribution and transmission, benefiting from colder weather patterns and increased investments in infrastructure. The company also projected robust capital expenditures of $7.6 billionb from 2014-2017, primarily focused on electric and natural gas distribution and electric transmission upgrades, indicating a commitment to future growth and reliability.
02—Key points
Key Highlights
- The company reported net income attributable to controlling interest of $786 million, or $2.49 per diluted share, a significant increase from the prior year, driven by the full year inclusion of NSTAR's results and operational improvements.
- Capital expenditures are projected at $7.6 billion from 2014-2017, with $3.5 billion allocated to electric and natural gas distribution segments and $3.7 billion to the electric transmission segment.
- The Electric Distribution segment, which includes generation, was the largest contributor to earnings, showing $427 million in net income.
- Transmission segment earnings also saw a notable increase to $287 million, reflecting ongoing investments in regional transmission infrastructure.
- The company successfully managed storm restoration costs, deferring significant expenses that were considered probable of recovery from customers through regulatory processes.
- Eversource Energy maintained solid credit ratings from major agencies, with Moody's upgrading its corporate credit and securities ratings for NU, CL&P, and PSNH, and WMECO by two levels, reflecting the company's stable financial health.
- The merger with NSTAR was largely completed and integrated, with the company highlighting the positive financial and operational impacts of this strategic combination.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 25, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $7.30B$6.27B | +16.4% |
| Operating Expenses | $5.77B$5.16B | +12.0% |
| Operating Income | $1.53B$1.12B | +36.8% |
| Interest Expense | $338.70M$329.94M | +2.7% |
| Net Income | $793.69M$533.08M | +48.9% |
| EPS (Basic) | $2.49$1.90 | +31.1% |
| EPS (Diluted) | $2.49$1.89 | +31.7% |
| Shares Outstanding (Basic) | 315.31M277.21M | +13.7% |
| Shares Outstanding (Diluted) | 316.21M277.99M | +13.7% |
05—Questions
Frequently Asked Questions
What was Eversource Energy's financial performance in 2013?
Eversource Energy reported a net income attributable to controlling interest of $786 million, or $2.49 per diluted share, in 2013. This represents a significant increase from 2012, primarily due to the full year inclusion of NSTAR's results following the April 2012 merger and improved operational performance across its segments.
How is Eversource Energy planning to invest capital in the coming years?
The company projected capital expenditures of approximately $7.6 billion from 2014 through 2017. The majority of these investments are directed towards its electric and natural gas distribution segments ($3.5 billion) and its electric transmission segment ($3.7 billion), indicating a strong focus on infrastructure upgrades and expansion.
What impact did the NSTAR merger have on Eversource Energy's 2013 results?
The merger with NSTAR, completed in April 2012, had a significant positive impact on 2013 results. The full year inclusion of NSTAR's operations contributed to higher revenues and earnings across all segments, and the company highlighted successful integration efforts that led to cost savings and improved operational performance.
How did the company manage significant storm events in 2013?
Eversource Energy experienced several significant storms in 2013, including the February blizzard. The company deferred substantial storm restoration costs, which management believed were prudent and probable of recovery from customers through applicable regulatory processes, mitigating the immediate impact on financial results.
06—Continue